The Enoch Mgijima Local Municipality (EMLM) has attributed its failure to pay its current Eskom account for March to the inability to collect revenue from defaulting residents and businesses during the lockdown period.
The EMLM was ordered by the Grahamstown High Court last year to make payment commitments that would involve the servicing of a R265m arrear debt by July 2022.
EMLM mayor Luleka Gubhula indicated defaulting residents and businesses were used to their electricity being switched off, a measure that would force them to make payments.
“When the president announced the lockdown, we realised it would be difficult to go and switch off the electricity supply of those who did not pay. Shortly after the lockdown announcement we received a communique from co-operative governance and traditional affairs (Cogta) MEC, Xolile Nqatha, ‘encouraging’ municipalities not to switch off electricity during the lockdown period, which we complied with.
“The people of Enoch Mgijima are used to being forced to pay by having their power switched off and then they pay. This has decreased our revenue collection, thus disabling from paying both our historical debt and current account.”
The Daily Dispatch reported (Virus blamed for Enoch Mgijima not paying Eskom, April 30) that the lockdown was announced on March 23 and implemented on March 26, which should not have affected the first tranche of about R30m due at the end of March.
Gubhula said as the lockdown was on level four and restrictions were eased, the municipal leadership would discuss ways to work towards paying the power utility.
EMLM previously owed R300m in historical debt, which led to an agreement between the two institutions, which would include the payment of the old debt and current monthly account. The municipality was to pay R30m when each tranche of their government grant was received.
The mayor said since the local authority was identified as one of 14 distressed municipalities in the country, she hoped they would benefit from the R20-billion relief fund to assist struggling departments and municipalities.
She encouraged the people to pay what was due to the municipality, indicating that if Eskom switched off the EMLM, everyone would be affected, including those who continued to pay.
Eskom spokesperson Zama Mpondwana had not replied to questions by the time of going to print.
